Energy

Hawaii Has Highest Gas Price at $2.58

Douglas A. McIntyre

Published: February 23, 2016 6:46 am

Last Updated: January 13, 2020 12:51 pm

The average price nationwide for a gallon of regular gasoline is $1.71. The comparable price in Hawaii, the state with the most expensive gas, is $2.58, according to GasBuddy. For consumers, it is an advantage to live close to sources of crude and in state where gas taxes are low.

Like all parts of the United States, Hawaii benefits from oil prices that have fluctuated around $30 for weeks and have risen or fallen by over 5% some days. The rapid increases and drops have not affected the fact that oil is sharply down from its 52-week high of $65.71.

The gas price in Hawaii cannot match that of the rest of the nation because of how far it is from supply. According to the EIA:

Hawaii does not produce petroleum and has no proved petroleum reserves. The state has two crude oil refineries, located in the Honolulu port area on Oahu. Both can produce a broad range of refined petroleum products and have been supplying almost all of Hawaii’s demand. Refinery feedstock is most often light sweet crude oil imported from Pacific Rim producers, although crude oil is also imported from Africa and the Middle East. Alaska used to be a major crude oil supplier to Hawaii, but its production has declined.

The closest major sources of crude are thousands of miles away, which means transportation costs are huge compared to states in the Continental United States, particularly those near supply such as states along the Gulf of Mexico.

Gas taxes and tariffs in Hawaii are particularly high. The U.S. average among all states, according to the American Petroleum Institute, is $0.48 per gallon. Hawaii’s number is the fourth highest among all states at $0.608. At the low end among all states, Alaska’s comparable tax is $0.307.

Taken together, these factors mean that, no matter how low gas prices go, Hawaii will be at the highest end among all states.